The State Bank of Pakistan has released the official numbers showing the actual size of the e-commerce market.
The numbers in full as was shown by State Bank of Pakistan data are as under.
|Number of Online Transactions (Prepayment)||1.2 M||FY17||APR|
|Value of Prepayment Transactions (Locally)||Rs. 9.8 B||FY17||FQR|
|Value of Prepayment Transactions (Internationally)||Rs. 20.7 B||FY17||FQR|
|Ecommerce Merchants (Locally)||571||FY17||APR|
|USD : PKR||105||30/06/17||Business Recorder|
Based on the report, it can be deduced that, on average, every prepayment order in Pakistan had a basket size greater than Rs. 8,000 and each of the 571 merchants processed about Rs. 17M in prepayment orders on average.
|E-commerce Market Size in Pakistan (Prepayment)||Rs. 9.8 B||$ 93 M|
|Average Order Size (Prepayment)||Rs. 8,167||$ 77.8|
|Average Revenue per Merchant (Prepayment)||Rs. 17.2 M||$ 163.5 K|
“Cash on Delivery” Market Size
Not all e-commerce transactions are done through pre-payment. For instance, in the large marketplaces and brand stores, most of the payments are made via cash on delivery terms. To accurately gauge the e-commerce market size, we have to make an assumption on the volume of transactions processed via Cash on Delivery (COD).
|Yayvo.com Revenue Breakdown according to Payment Method (2017)|
|Order Value (PKR)||COD||Prepayment|
This shows that the e-commerce market size in Pakistan is ~ Rs 65 Billion 0r ~ $ 6.20 Million.
|Assumption of COD Market Size||COD Market Size (PKR)||Total Market Size (PKR)||Total Market Size (USD)|
|95%||186.2 B||196.0 B||1.90 B|
|90%||88.2 B||98.0 B||933 M|
|85%||55.5 B||65.3 B||622 M|
|80%||39.2 B||49 B||467 M|
|70%||22.9 B||32.7 B||311 M|
The overall e-commerce market size is much bigger than what many industry insiders estimate. After reviewing and examining the numbers, the conclusion is that the e-commerce market size transcended $600M in the 12-months period between July 2016 and June 2017.
—The Article was originally posted on propakistani.pk